OCC Tightens Regulatory Requirements for STIFs

November 07, 2012

The U.S. Office of the Comptroller of the Currency (“OCC”) adopted a final rule on October 9, 2012 that revises the requirements imposed on national banks’ short-term investment funds (“STIFs”). In particular, the final rule enhances current requirements imposed on STIFs under Regulation 9 (“STIF Rule”). Although STIFs are similar to money market funds (“money funds”) registered under the Investment Company Act of 1940, as amended (“1940 Act”), and the two products faced similar issues during the 2008 financial crisis, up until this point, STIFs have escaped additional regulations like those imposed on money funds as part of the 2010 amendments to Rule 2a-7 under the 1940 Act (the “2010 Amendments”). This OnPoint discusses the amended STIF Rule and highlights similarities and differences between the amended Rule and Rule 2a-7.

Read “OCC Tightens Regulatory Requirements for STIFs.”